Trader: I want to ask about the requirements for professional trading client status?
could you explain a bit more about the £500k requirement?

GBG: Hi. In what capacity? Risk capital or trade size?

Trader: ESMA rules state that one of the requirements to trade binary options is that one must have £500k…can this a total of all the trades I have staked in binary options over the years?

GBG: We don’t recommend binary options, but the EUR 500,000 for elective professionals refers to the size of your investment portfolio – not the value of executed trades.
You can see more information on the FCA handbook here: (COBS 3.5.3) or the ESMA Q&A here: (Question 6)

Trader: please can you explain what you mean by investment portfolio

GBG: That would be the combination of you investments across stocks, bonds, derivatives (net equity) etc.

Trader: incl. property?

GBG: Not normally, no. It would probably refer to liquid assets.

Trader: ok thank you for your thoughts

GBG: You’re welcome…

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